Africa's leading indigenous energy solutions provider, Oando PLC, has called for Environmental, Social and Governance (ESG) performance to be measured by the value it creates for businesses, communities and economies, rather than by compliance and disclosure alone. The Company's Chief Corporate Services & Sustainability Officer, Ayotola Jagun, made the call during a panel session on "Measuring the Economic Value of ESG Beyond Regulatory Disclosure" at the 20th Annual Business Law Conference of the Nigerian Bar Association Section on Business Law (NBA-SBL), held in Abuja.
With the theme "Beyond Reforms: Measuring Policy Impact," the NBA-SBL 20th Annual Business Law Conference convened business leaders, policymakers, regulators and sustainability practitioners to examine the effectiveness of reforms across key sectors. As part of the programme, Jagun joined fellow panelists Nana Maidugu, Head, Sustainability, Nigeria Sovereign Investment Authority (NSIA); Dr. Adnan Aminu Adnan, Head, Climate Finance, Bank of Agriculture; and Titilope Oguntuga, Director, Sustainability, IHS Nigeria Limited, to discuss how organizations can better measure the economic value generated through ESG initiatives beyond regulatory disclosure requirements.
Drawing on Oando's experience, Jagun noted that organizations must move beyond viewing ESG as a regulatory obligation and instead recognize its potential to create value for businesses, communities and the broader economy. "A key part of the journey is changing the mindset around ESG, from seeing it as a cost center to recognizing it as an opportunity to create value, not just for the company, but for communities and the country as well," she said.
Jagun noted that Oando has embedded ESG considerations across its operations by aligning its sustainability strategy with business priorities, stakeholder expectations, national development objectives and global sustainability frameworks. According to her, this approach ensures that ESG principles are integrated into decision-making processes across business units, enabling the Company to translate sustainability commitments into measurable outcomes.
Highlighting the business case for ESG, Jagun noted that sustainability initiatives can generate tangible value beyond regulatory compliance. She cited efforts to reduce gas flaring as an example of how ESG can create measurable business value through reduced compliance costs, gas monetization opportunities, potential carbon credit generation, and enhanced corporate reputation.
"Increasingly, lenders, particularly international lenders, are placing ESG performance under the spotlight. They want to understand not only what companies report, but how effectively they manage environmental, social and governance issues."
While acknowledging growing global interest in climate, green and sustainability-linked finance, Jagun commented that access to such funding remains a significant challenge for businesses operating in emerging markets, particularly given the capital-intensive nature of many energy transition projects and the risk premium often associated with frontier markets.
"There is growing conversation around the availability of climate finance, green finance and sustainability-linked finance, but access to that capital remains a very different challenge, particularly for businesses operating in emerging markets," she said.
Despite these challenges, Jagun noted that Oando continues to advance initiatives that support Nigeria's energy transition ambitions. She highlighted the Company's investments through Oando Clean Energy (OCEL), including activities across electric mobility, wind and other emerging clean energy solutions, underscoring Oando's commitment to creating long-term value while supporting a just and sustainable energy transition.
Jagun also highlighted Oando's commitment to internationally recognized sustainability standards, noting that the Company reports in line with the Global Reporting Initiative (GRI) framework and subjects its sustainability performance to independent assessment as part of its commitment to transparency, accountability and continuous improvement. She added that Oando is working towards international ESG benchmarking to further strengthen its sustainability credentials and support efficient access to capital.
Reaffirming Oando's commitment to accountability and transparency, Jagun stressed the importance of demonstrating measurable progress against sustainability commitments.
"For us, ESG is more than reporting. It is about delivering on our commitments, measuring our performance and being accountable for the outcomes, including where we fall short," she said.
Her remarks reinforced Oando's position that the true value of ESG lies not in disclosure alone, but in its ability to strengthen resilience, support responsible growth, improve stakeholder confidence and contribute meaningfully to sustainable development.
